Former Arizona CEO Kevin Lamorris McKenzie has been handed a 14-year prison sentence after pleading guilty to charges of wire fraud and embezzlement, as part of a scheme to siphon $33 million from a tribal healthcare provider. The sentencing took place earlier this month and included a concurrent 5-year term, according to a press release from the U.S. Attorney’s Office, District of Arizona.
In a detailed account of his wrongdoings, McKenzie, who was at the helm of Apache Behavioral Health Services (ABHS), manipulated contracts and set up a shell company to divert funds from the White Mountain Apache Tribe's healthcare organization. From 2015 to 2023, he orchestrated this defraud, which included creating fictitious referral contracts that never resulted in any actual employee referrals for ABHS.
The court has also instructed McKenzie to pay back over $33 million to ABHS, along with forfeiting several pieces of real estate and luxury items including a Rolls Royce, a classic Ford Galaxie, and a Range Rover. The information, detailed in the U.S. Attorney's Office release, paints a picture of extravagance funded by ill-gotten gains. Additionally, McKenzie has conceded to apply more than $364,000 seized in a related case towards restitution.
His co-defendant, Corina Martinez, was similarly implicated in the scheme, helping McKenzie launder the embezzled funds through another company, Evolved Health Care Inc. This company, although purportedly set to refer qualified candidates to ABHS, never performed any services. Instead, it served as a conduit for the diverted money, which Martinez used to pay for McKenzie's luxurious lifestyle—buying items like a Rolls Royce Ghost and a nearly million-dollar home. These details were confirmed by the official press release.
The investigation was conducted by the FBI's Phoenix Division's Tucson office and the prosecution was handled by the Financial Crimes and Public Corruption Unit. For further details on the case and other news from the U.S. Attorney’s Office, District of Arizona, one can visit their official website or follow their Twitter handle @USAO_AZ.
